Press releases
Christmas 2004 Trading Statement
11/01/2005
The GAME Group plc (‘GAME’) is today providing an update on its trading performance over the Christmas period and for the 49 weeks to 8 January 2005.
The Board expects a satisfactory trading outcome for the year as a whole, taking into account the well publicised world-wide Playstation 2 hardware shortages leading up to and over the Christmas period. The Board anticipates that the performance in the second half of the year will be around 10% ahead of the same period last year when the Group generated an operating profit before goodwill and exceptionals of £32.4m.
As we indicated earlier in the year like for like (‘LFL’) sales will be down for the full year.
During the 49 week period ended on 8 January 2005;
- Total Group sales were down by 4.8%. Group LFL sales were down by 12.1%.
- Total sales for the UK and Ireland were down by 9.1% with LFL sales down by 15.1%.
- Total sales for Continental Europe were up by 21.7% with LFL sales up by 6.5%.
During the 6 week period ended on 8 January 2005;
- Total Group sales were down by 9.8%. Group LFL sales were down by 17.1%.
- Total sales for the UK and Ireland were down by 15.1% with LFL sales down by 20.4%.
- Total sales for Continental Europe were up by 22.6% with LFL sales up by 2.7%.
The substantially improved trading performance in Continental Europe is very encouraging. In aggregate their trading results for the year will be close to break even - a year earlier than forecast.
From the outset of the year, the Group has targeted improved gross margin performance. The Group anticipates that the gross margin for the year ending 29 January 2005 will increase by around 150 basis points over the previous year.
Commenting on the Christmas trading period Peter Lewis, Chairman said:
“The non-availability of console hardware in the run up to Christmas was particularly disappointing after the strong start to the second half, with titles such as GTA: San Andreas and Halo 2 setting sales records. The Playstation 2 and Microsoft Xbox consoles were reduced to around £100 which created tremendous demand. Indeed, Group LFL sales for the quarter to 30 October were ahead by 2.1%.
Faced with this unprecedented breakdown in the supply of Playstation 2 and the resultant impact on customer flows, we rapidly adapted our trading strategy utilising strong software offers and promoting alternative hardware formats to drive gross margin. Throughout the year we have maintained strong cost controls and this has also helped to offset the impact of reduced revenues.
We remain confident regarding the medium term prospects for GAME with the new handheld products, the Sony PSP and the Nintendo DS, scheduled for the first half of 2005.”
Store numbers
| 31.01.04 | 8.01.05 | |
|---|---|---|
| UK and Ireland | 359 | 398 |
| France | 58 | 67 |
| Spain | 39 | 50 |
| Scandinavia | 35 | 53 |
| Franchises | 57 | 54 |
| Total | 548 | 622 |
Enquiries
| The GAME Group plc | Martin Long Group Chief Executive |
+44 (0)1256 784085 |
|---|---|---|
| David Thomas Group Finance Director |
+44 (0)1256 784085 | |
| Brunswick | Jonathan Glass Ash Spiegelberg |
+44 (0)20 7404 5959 |
